[§323F-7.6]  Transition of Hawaii
health systems regional system or health facility to a new entity.  (a)  Notwithstanding
any other law to the contrary, including but not limited to section 27-1 and
chapter 171, any of the regional systems or individual facilities of the Hawaii
health systems corporation is hereby authorized to transition into a new legal
entity in any form recognized under the laws of the State, including but not
limited to:



(1)  A nonprofit corporation;



(2)  A for-profit corporation;



(3)  A municipal facility;



(4)  A public benefit corporation; or



(5)  Any two or more of the entities in paragraphs (1)
through (4).



A transition shall occur through the sale, lease, or
transfer of all or substantially all of the assets of the facility or regional
system, except for real property which shall only be transferred by lease.  Any
transition shall comply with chapter 323D.



(b)  A transition shall only occur upon
approval of the appropriate regional system board in the case of a regional system
or individual facility transition, or upon approval of the regional system boards
and the corporation in the case of the transition of the entire corporation. 
Any transition shall be subject to legal review by the attorney general who
shall approve the transition if satisfied that the transition conforms to all
applicable laws, subject to the review of the director of the department of
budget and finance who shall approve the transition if it conforms to all
applicable financing procedures, and subject to the governor's approval.  In
addition the transition shall be subject to the following terms and conditions:



(1)  All proceeds from the sale, lease, or transfer of
assets shall be used for health care services in the respective regional system
or facility, except that real property shall only be transferred by lease;



(2)  Any and all liabilities of a regional system or
facility transitioning into a new entity that were transferred to the Hawaii
health systems corporation upon its creation by Act 262, Session Laws of Hawaii
1996, and all liabilities of the regional system or facility related to
collective bargaining contracts negotiated by the State, shall become the
responsibility of the State; and



(3)  During the period of transition:



(A)  The State shall continue to fund the
provision of health care services provided for by the regional system or
individual facility; and



(B)  All applicable provisions of this chapter
shall continue to apply.



Upon the completion of the transition of all
the facilities in a regional system to a new entity, the regional system board
for that regional system shall terminate; provided that if not all of a
regional system's facilities are transitioned to a new entity, the existing
regional system board shall not terminate but shall continue to retain
jurisdiction over those facilities remaining in the regional system. [L 2009, c
182, pt of §8]